Regardless of the type of vehicles you sell, making sure you buy the best insurance for your dealership is critical. From the cost of the inventory you hold to your other liabilities, you need to ensure you have the right coverage to prevent any unnecessary financial stress on your business.
The best way to protect your dealership and its assets is to find the best dealership insurance. Here, we list the different types of insurance you can buy for a dealership and explain what each gives you coverage against.
As the owner of a dealership, the issues you face are unique, and buying standard commercial insurance alone is not going to be enough. You need coverage for the special insurance exposure that only a dealership will face. And, if you hire staff, then you’ll also need to make sure that their needs are accounted for too.
Buying E&O insurance for a dealership can protect you from financial ruin. If an error is made when any finance paperwork or applications are being made or important information isn’t correctly obtained regarding the history of the vehicle, it may have severe financial repercussions on your business. Dealership indemnity coverage can protect you financially should any instance or event such as this occurs.
If you want to try and save money on your dealership insurance quotes, buying a BOP will combine two or three types of policies, which are usually Commercial Property and General Liability coverage into a single product. In some cases, business interruption coverage is also included. This will typically cover you from third-party liability claims that may be brought against your business for property damage or bodily injury. It will also cover the property against a range of perils and cover your inventory, equipment, and furnishings too. If business interruption coverage is included, this can help you to reclaim lost income in case of a covered event that means your business cannot operate.
If a product you supply malfunctions and causes injury to a person or property, then product liability coverage can give you financial protection. It will usually cover the legal cost of a defense, along with any associated court expenses.
Crime insurance is another popular insurance to buy for a dealership. It offers coverage for any loss of money in the case of theft, burglary, forgery, embezzlement, robbery, and most other business-related crimes. It will not usually cover employee theft, but there is usually an optional extra you can buy for this.
As much of an asset, your staff can be, they also present your business with risks. We mentioned employee theft insurance above as one such example, but you can buy EPLI coverage to protect for you the other instances that your employee actions could leave your business liable for. EPLI can give you protection should a member of staff claim for any employment-related issues, such as harassment, discrimination, wrong-termination, and more. If an employee alleges a wrongful action, you will get coverage for your legal expenses and any associated costs.
EPLI will not cover employee injuries, nor will it cover their medical expenses if they are injured at work.
If you hire staff, then you will need to buy Workers Compensation Coverage. This is a state requirement that gives you coverage that will pay for any medical expenses should a member of your team sustain an injury at work or develop a workplace illness.
With so much vital information being held on your company servers, you need to protect that data against any vulnerabilities. If you store personal and financial data, which most dealerships do, should that information become compromised, it can harm your reputation along with your bottom line.
If you are a dealership owner, and you need to buy insurance, getting quotes online can be a challenge, not to mention time-consuming. The best way to get accurate quotes for insurance for your dealership’s liabilities is to speak with a commercial insurance agent in person. You can buy your coverage at the right levels for your individual risk profile, and it gives you the opportunity to ask any questions to a dedicated expert who understands the dealership insurance market and the specifics risks your dealership is faced with.